Economical overview
No other country in the Caribbean has been as
dependent on the banana industry as Dominica, but banana
production has been in crisis for a long time. Attempts
to develop other industries have been slow.
Bananas were the country's most important export
product for many years, but production has fallen
sharply as a result of falling prices and increased
competition in the world market. Until 2006, Dominica
and the other former colonies in the Caribbean were
guaranteed some banana exports to the EU, but after a
long dispute with the US and banana growers in Latin
America, the EU was forced to abolish this system.
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Countryaah.com:
Major imports by Dominica, covering a full list of top products imported by the country and trade value for each product category.
The banana crops on Dominica are often difficult to
access in the mountains and the farming methods are
outdated, making the country's bananas more expensive
than many competitors. The crops are also destroyed at
regular intervals by hurricanes. As a stone on burden,
Dominica's banana crops were affected by an infectious
disease from 2012 and production fell further.
Agriculture is still the most important industry and
the most growing. Around one fifth of the population was
engaged in agriculture. While banana production is in
decline, the cultivation of mango, avocado, citrus
fruits and vegetables is increasing. The cultivation of
coconuts is also important.
The fishing that is carried out is mostly for housing
needs, but some catches are processed at facilities in
the country's ports and sold to neighboring countries.
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Abbreviationfinder.org: Check this abbreviation website to find three letter ISO codes for all countries in the world, including DMA which represents the country of Dominica.
The industry consists mainly of smaller companies
that process agricultural products. The country's only
significant manufacturing industry, which, among other
things, made toothpaste and coconut soap, closed after
Hurricane Erika's ravages in 2015. There is also a
brewery and a banana packaging company. The construction
industry has expanded through government-financed
expansion of mainly roads and housing. There is also a
small mining industry that breaks pumice, among other
things to the construction industry.
The importance of the tourism industry for the
economy has increased, but the expansion of tourism is
limited by the fact that the beaches are few and
relatively small and that the country lacks an airport
that can receive international flights.
The average economic growth rate is among the lower
in the region. The development is uneven and the years
when the island is affected by hurricanes, there are
major setbacks in the development. Hurricane Erika's
ravages in 2015 are estimated to have caused the country
economic damage equivalent to half GDP. Hurricane Maria,
which advanced across the island in 2017, was expected
to have far worse effects.
There is a large deficit in trade with the outside
world. Import of goods exceeds exports many times (see
fact box). The deficits are covered by loans, assistance
and money that emigrants abroad send home. Other
important income comes from the citizenship trade.
Anyone investing $ 175,000 in the country gets a
Dominican passport.
Like Dominica, Dominica enjoys favorable trading
conditions in the US market through the Caribbean Basin
Initiative and with the EU through the European
Partnership Agreement (EPA). Membership of Venezuela's
Petrocaribe initiative gives Dominica a discount on
Venezuela's oil imports.
To broaden the economy, Dominica is trying to attract
foreign finance companies with particularly favorable
terms, and the country has attracted companies accused
of engaging in money laundering. Dominica's laws have
been criticized by the OECD and other organizations for
not doing enough to prevent such foam deals. After the
criticism, the laws have been rewritten.
Other stated priority areas for the government are to
expand communications within the country and reduce
bureaucracy.
Sources: Europa World Plus, FAO
FACTS - FINANCE
GDP per person
US $ 7,032 (2018)
Total GDP
US $ 504 million (2018)
GDP growth
0.5 percent (2018)
Agriculture's share of GDP
12.7 percent (2018)
Manufacturing industry's share of GDP
1.3 percent (2018)
The service sector's share of GDP
55.1 percent (2018)
Inflation
1.6 percent (2019)
Government debt's share of GDP
74.1 percent (2018)
External debt
US $ 296 million (2017)
Currency
eastern Caribbean dollar
Merchandise exports
US $ 22 million (2017)
Imports
US $ 174 million (2017)
Current account
US $ 202 million (2017)
Commodity trade's share of GDP
57 percent (2018)
Main export goods
paper products, minerals, machinery and electrical
appliances, fruits and vegetables
Largest trading partner
USA, China, Jamaica, Trinidad and Tobago, UK, France,
Saint Kitts and Nevis
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